Memo

An act to amend the executive law, in relation to state contract preference for service-disabled veteran owned small businesses

PURPOSE:

This bill would establish a program to provide a state contract preferences for service disabled owned small businesses.

SUMMARY OF SPECIFIC PROVISIONS:

Specifically, this bill would establish a new section 368 of the executive law to provide for a state contract preference for service disabled veteran owned small businesses. In so doing, it would require that the heads of state, agencies shall provide the opportunity for service-disabled veteran businesses to significantly increase the state contracting and subcontracting of such businesses, by establishing a goal of not less than 3 percent for participation by service-disabled veteran businesses in state contracting, and each that agency contracting officer would have the authority to reserve certain procurements for service disabled veteran businesses in order to achieve compliance with such goal.

This bill would further provide that In order to implement the provisions and policy of providing this preference, the heads of an state agencies must develop and publicly publish a strategy to implement the preference; make the agency's strategy publicly available, have such strategy posted upon the website of such agency and report annually to the Governor, the President Pro Tempore of the Senate, the Speaker of the Assembly, the Chair of the Senate Standing Committee on Veterans, Homeland Security and Military Affairs, and the chair of the Assembly Standing Committee on Veterans Affairs on the implementation of the agency's strategy; designate a senior-level official within such agency who would be responsible for developing and implementing the agency's strategy; include development and implementation of the agency's strategy and achievements in furtherance of the strategy as significant elements in any performance plans of the agency's designated agency senior-level official and chief acquisition or procurement officer; and include in the agency's strategy plans for reserving agency contracts exclusively for service-disabled veteran businesses, encouraging and facilitating participation by service disabled veteran business e s in competitions for award of agency contracts, encouraging agency contractors to subcontract with service-disabled veteran businesses and actively monitoring and evaluating agency contractors' efforts to do so, training agency personnel on applicable law and policies relating to participation of service-disabled veteran businesses in state contracting, and disseminating information to service-disabled veteran businesses that would assist these businesses in participating in awards of agency contracts.

This bill would also establish support roles to implement this preference for the Deputy Commissioner of the Division for Small Business, the Commissioner of the Office of General Services, the Office of the State Comptroller, the Office of the Attorney General, the Director of the Division of Veterans Affairs. The Commissioner of Labor, and the State and City University systems.

JUSTIFICATION:

The state of New York needs to strengthen opportunities in state contracting for service-disabled veteran owned small businesses. The extraordinary service rendered to our state and the United States by veterans with disabilities incurred or aggravated in the line of duty during active service with the armed forces is worthy of providing a contract preference to all service-disabled veteran businesses.

This bill would codify for New York an identical and highly successful program adopted for federal contracting. With the number of our veterans growing, and with their service and risk of disability increasing due to foreign conflicts, this bill would provide a small measure of recognition and support that this group of selfless men and women so deserve.

PRIOR LEGISLATIVE HISTORY:

2007 - S.4218: Passed Senate 62-0

FISCAL IMPLICATIONS:

None Noted.

EFFECTIVE DATE:

This act would take effect immediately.

Text

STATE OF NEW YORK
________________________________________________________________________
2423
2011-2012 Regular Sessions
IN SENATE
January 20, 2011
___________

Introduced by Sen. BALL -- read twice and ordered printed, and when
printed to be committed to the Committee on Veterans, Homeland Securi-
ty and Military Affairs
AN ACT to amend the executive law, in relation to state contract prefer-
ence for service-disabled veteran owned small businesses
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The executive law is amended by adding a new section 369 to
read as follows:
S 369. STATE CONTRACT PREFERENCE FOR SERVICE-DISABLED VETERAN OWNED
SMALL BUSINESSES. 1. LEGISLATIVE FINDINGS AND DETERMINATIONS. THE LEGIS-
LATURE HEREBY FINDS AND DETERMINES THAT IT SHALL BE THE POLICY OF THE
STATE OF NEW YORK TO STRENGTHEN OPPORTUNITIES IN STATE CONTRACTING FOR
SERVICE-DISABLED VETERAN OWNED SMALL BUSINESSES.
THE LEGISLATURE HEREBY FURTHER FINDS AND DETERMINES THAT NEW YORK
STATE SHOULD HONOR THE EXTRAORDINARY SERVICE RENDERED TO OUR STATE AND
THE UNITED STATES BY VETERANS WITH DISABILITIES INCURRED OR AGGRAVATED
IN THE LINE OF DUTY DURING ACTIVE SERVICE WITH THE ARMED FORCES BY
PROVIDING A CONTRACT PREFERENCE TO ALL SERVICE-DISABLED VETERAN BUSI-
NESSES.
2. DEFINITIONS. WHEN USED IN THIS SECTION, THE FOLLOWING TERMS SHALL
MEAN AND BE DEFINED AS FOLLOWS:
(A) "AGENCY" MEANS ANY DEPARTMENT, BOARD, BUREAU, COMMISSION, DIVI-
SION, OFFICE, COUNCIL, COMMITTEE OR OFFICER OF THE STATE, OR A PUBLIC
BENEFIT CORPORATION OR PUBLIC AUTHORITY AT LEAST ONE OF WHOSE MEMBERS IS
APPOINTED BY THE GOVERNOR, AUTHORIZED BY LAW TO MAKE RULES OR TO MAKE
FINAL DECISIONS IN ADJUDICATORY PROCEEDINGS BUT SHALL NOT INCLUDE THE
GOVERNOR, AGENCIES IN THE LEGISLATIVE AND JUDICIAL BRANCHES, AGENCIES
CREATED BY INTERSTATE COMPACT OR INTERNATIONAL AGREEMENT, THE DIVISION
OF MILITARY AND NAVAL AFFAIRS TO THE EXTENT IT EXERCISES ITS RESPONSI-
BILITY FOR MILITARY AND NAVAL AFFAIRS, THE DIVISION OF STATE POLICE, THE

EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08543-01-1

S. 2423 2

IDENTIFICATION AND INTELLIGENCE UNIT OF THE DIVISION OF CRIMINAL JUSTICE
SERVICES, THE STATE INSURANCE FUND, THE UNEMPLOYMENT INSURANCE APPEAL
BOARD, AND EXCEPT FOR PURPOSES OF SUBDIVISION ONE OF SECTION TWO HUNDRED
TWO-D OF THE STATE ADMINISTRATIVE PROCEDURE ACT, THE WORKERS' COMPEN-
SATION BOARD AND EXCEPT FOR PURPOSES OF ARTICLE TWO OF THE STATE ADMIN-
ISTRATIVE PROCEDURE ACT, THE STATE DIVISION OF PAROLE AND THE DEPARTMENT
OF CORRECTIONAL SERVICES;
(B) "SERVICE-DISABLED" MEANS, WITH RESPECT TO DISABILITY, THAT THE
DISABILITY WAS INCURRED OR AGGRAVATED IN THE LINE OF DUTY IN THE ACTIVE
SERVICE IN THE UNITED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST
GUARD, AND/OR RESERVES THEREOF, AND/OR IN THE ARMY NATIONAL GUARD, AIR
NATIONAL GUARD, NEW YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA;
(C) "SERVICE-DISABLED VETERAN" MEANS A VETERAN, WHO INCURRED OR AGGRA-
VATED A DISABILITY IN THE LINE OF DUTY IN THE ACTIVE SERVICE IN THE
UNITED STATES ARMY, NAVY, AIR FORCE, MARINES, COAST GUARD, AND/OR
RESERVES THEREOF, AND/OR IN THE ARMY NATIONAL GUARD, AIR NATIONAL GUARD,
NEW YORK GUARD AND/OR THE NEW YORK NAVAL MILITIA; AND
(D) "SERVICE-DISABLED VETERAN BUSINESS" MEANS A SMALL BUSINESS
CONCERN, EMPLOYING LESS THAN ONE HUNDRED PERSONS, OWNED AND CONTROLLED
BY SERVICE-DISABLED VETERAN OR VETERANS.
3. CONTRACT PREFERENCES AND SET ASIDES. THE HEADS OF AGENCIES SHALL
PROVIDE THE OPPORTUNITY FOR SERVICE-DISABLED VETERAN BUSINESSES TO
SIGNIFICANTLY INCREASE THE STATE CONTRACTING AND SUBCONTRACTING OF SUCH
BUSINESSES. TO ACHIEVE THAT OBJECTIVE, SUCH AGENCIES SHALL ESTABLISH A
GOAL OF NOT LESS THAN THREE PERCENT FOR PARTICIPATION BY SERVICE-DISA-
BLED VETERAN BUSINESSES IN STATE CONTRACTING, AND EACH AGENCY CONTRACT-
ING OFFICER SHALL HAVE THE AUTHORITY TO RESERVE CERTAIN PROCUREMENTS FOR
SERVICE-DISABLED VETERAN BUSINESSES IN ORDER TO ACHIEVE COMPLIANCE WITH
SUCH GOAL.
4. DUTIES OF AGENCY HEADS. IN ORDER TO IMPLEMENT THE PROVISIONS AND
POLICY ESTABLISHED IN SUBDIVISION THREE OF THIS SECTION, HEADS OF AGEN-
CIES SHALL:
(A) DEVELOP A STRATEGY TO IMPLEMENT THE PROVISIONS AND POLICY ESTAB-
LISHED IN SUBDIVISION THREE OF THIS SECTION; AND SHALL PUBLICLY PUBLISH
SUCH STRATEGY;
(B) MAKE THE AGENCY'S STRATEGY PUBLICLY AVAILABLE, HAVE SUCH STRATEGY
POSTED UPON THE WEBSITE OF SUCH AGENCY; AND REPORT ANNUALLY TO THE
GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER OF THE
ASSEMBLY, THE CHAIR OF THE SENATE STANDING COMMITTEE ON VETERANS, HOME-
LAND SECURITY AND MILITARY AFFAIRS, AND THE CHAIR OF THE ASSEMBLY STAND-
ING COMMITTEE ON VETERANS AFFAIRS ON THE IMPLEMENTATION OF THE AGENCY'S
STRATEGY;
(C) DESIGNATE A SENIOR-LEVEL OFFICIAL WITHIN SUCH AGENCY WHO SHALL BE
RESPONSIBLE FOR DEVELOPING AND IMPLEMENTING THE AGENCY'S STRATEGY;
(D) INCLUDE DEVELOPMENT AND IMPLEMENTATION OF THE AGENCY'S STRATEGY
AND ACHIEVEMENTS IN FURTHERANCE OF THE STRATEGY AS SIGNIFICANT ELEMENTS
IN ANY PERFORMANCE PLANS OF THE AGENCY'S DESIGNATED AGENCY SENIOR-LEVEL
OFFICIAL AND CHIEF ACQUISITION OR PROCUREMENT OFFICER; AND
(E) INCLUDE IN THE AGENCY'S STRATEGY PLANS FOR:
(I) RESERVING AGENCY CONTRACTS EXCLUSIVELY FOR SERVICE-DISABLED VETER-
AN BUSINESSES;
(II) ENCOURAGING AND FACILITATING PARTICIPATION BY SERVICE-DISABLED
VETERAN BUSINESSES IN COMPETITIONS FOR AWARD OF AGENCY CONTRACTS;
(III) ENCOURAGING AGENCY CONTRACTORS TO SUBCONTRACT WITH SERVICE-DISA-
BLED VETERAN BUSINESSES AND ACTIVELY MONITORING AND EVALUATING AGENCY
CONTRACTORS' EFFORTS TO DO SO;

S. 2423 3

(IV) TRAINING AGENCY PERSONNEL ON APPLICABLE LAW AND POLICIES RELATING
TO PARTICIPATION OF SERVICE-DISABLED VETERAN BUSINESSES IN STATE
CONTRACTING; AND
(V) DISSEMINATING INFORMATION TO SERVICE-DISABLED VETERAN BUSINESSES
THAT WOULD ASSIST THESE BUSINESSES IN PARTICIPATING IN AWARDS OF AGENCY
CONTRACTS.
5. DUTIES OF DEPUTY COMMISSIONER OF THE DIVISION FOR SMALL BUSINESS.
THE DEPUTY COMMISSIONER RESPONSIBLE FOR HEADING THE DIVISION FOR SMALL
BUSINESS WITHIN THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AS ESTABLISHED
PURSUANT TO SECTION ONE HUNDRED THIRTY-TWO OF THE ECONOMIC DEVELOPMENT
LAW, SHALL:
(A) DESIGNATE AN APPROPRIATE ENTITY WITHIN THE DIVISION FOR SMALL
BUSINESS THAT SHALL, IN COORDINATION WITH THE DIVISION OF VETERANS
AFFAIRS AND THE OFFICE OF THE STATE COMPTROLLER, PROVIDE TO SERVICE-DIS-
ABLED VETERAN BUSINESSES INFORMATION AND ASSISTANCE CONCERNING PARTIC-
IPATION IN STATE CONTRACTING;
(B) ADVISE AND ASSIST HEADS OF AGENCIES IN THEIR IMPLEMENTATION OF
SUBDIVISION THREE OF THIS SECTION;
(C) MAKE AVAILABLE TO SERVICE-DISABLED VETERAN BUSINESSES TRAINING IN
STATE CONTRACTING LAW, PROCEDURES, AND PRACTICES THAT WOULD ASSIST SUCH
BUSINESSES IN PARTICIPATING IN STATE CONTRACTING; AND
(D) IN COOPERATION WITH THE CHANCELLOR OF THE STATE UNIVERSITY AND THE
STATE UNIVERSITY, CITY UNIVERSITY AND COMMUNITY COLLEGE SYSTEMS, DEVELOP
A TRAINING PROGRAM ON STATE CONTRACTING WITH SERVICE-DISABLED VETERAN
BUSINESSES AND MAKE THIS TRAINING AVAILABLE ONLINE THROUGH A CONTINUOUS
LEARNING PROGRAM.
6. DUTIES OF COMMISSIONER OF THE OFFICE OF GENERAL SERVICES. THE
COMMISSIONER OF THE OFFICE OF GENERAL SERVICES, IN COORDINATION WITH THE
OFFICE OF THE STATE COMPTROLLER AND THE OFFICE OF THE ATTORNEY GENERAL,
SHALL:
(A) ESTABLISH A STATE GOVERNMENT-WIDE ACQUISITION CONTRACT RESERVED
FOR PARTICIPATION BY SERVICE-DISABLED VETERAN BUSINESSES; AND
(B) ASSIST SERVICE-DISABLED VETERAN BUSINESSES TO BE INCLUDED IN STATE
SUPPLY, CONTRACTS AND REQUESTS FOR PROPOSAL SCHEDULES.
7. DUTIES OF THE STATE DIRECTOR. THE STATE DIRECTOR SHALL:
(A) ASSIST AGENCIES BY MAKING AVAILABLE SERVICES OF THE DIVISION TO
FACILITATE THE PROVISIONS OF THIS SECTION;
(B) ESTABLISH A REGISTRATION PROGRAM OF SERVICE-DISABLED VETERAN BUSI-
NESSES AND ESTABLISH AND MAINTAIN A DATABASE WITH REGARD TO SERVICE-DIS-
ABLED VETERAN BUSINESSES, FOR USE BY AGENCIES IN THEIR IMPLEMENTATION OF
THIS SECTION;
(C) ESTABLISH AND MAINTAIN, TOGETHER WITH THE COMMISSIONER OF LABOR, A
TRANSITION ASSISTANCE PROGRAM AND A DISABILITY TRANSITION ASSISTANCE
PROGRAM TO EDUCATE SEPARATING SERVICE MEMBERS AS TO THE BENEFITS AVAIL-
ABLE TO SERVICE-DISABLED VETERAN BUSINESSES AND AS TO POTENTIAL ENTRE-
PRENEURIAL OPPORTUNITIES; AND
(D) DISCLOSE PERSONALLY IDENTIFYING INFORMATION ON SERVICE-DISABLED
VETERANS TO OTHER AGENCIES WHO REQUIRE SUCH INFORMATION IN ORDER TO
DISCHARGE THE DIVISION'S RESPONSIBILITIES UNDER THIS SECTION.
S 2. This act shall take effect immediately.

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